Orbit Corp. issued a $400,000, 10%, 15-year mortgage on January 1, 2007, to purchase warehouses.

 

Semiannual Interest Period Cash Payment Interest Expense Decrease in Principal Principal Balance

(10% x 6/12)

January 1, 2007 $400,00

June 30, 2007 $26,021 $20,000 $6,021 393,979

December 31, 2007 $26,021 $19,699 $6,322 387,657

June 30, 2008

December 31, 2008

June 30, 2009

Journal

Date Accounts and Explanations Post Ref. Debit Credit

2007

Jan 1

Jun 30

 

1. Complete the amortization schedule for Orbit Corp., assuming payments are made semiannually.

2. Record the journal entries for (a) issuance of mortgage on January 1, 2007, and (b) the first interest cash payment on June 30, 2007. 

  • 6 years ago
assignment
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  • attachment
    l7a1_soln.xls